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General Mills (GIS)
NYSE:GIS
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General Mills
(NYSE:GIS)72Outperform
Positive Factors
Digital Capabilities
Investments in digital capabilities are generating material efficiency savings and more constructive interactions with consumers and retailers.
Market Share Growth
Market share is building with all four segments improving volume and value shares, which could enhance momentum into low Street expectations for FY26.
Negative Factors
Earnings Guidance
General Mills now expects FY25 adjusted EPS to be lower due to increased interest expenses related to debt for an acquisition.
General Mills (GIS) vs. S&P 500 (SPY)
Market Cap
$33.70B
Dividend Yield3.85%
Average Volume (3M)4.84M
Price to Earnings (P/E)13.3
Beta (1Y)-0.08
Revenue Growth-1.48%
EPS Growth11.45%
CountryUS
Employees34,000
SectorConsumer Defensive
Sector Strength73
IndustryConsumer Products - Foods
Share Statistics
EPS (TTM)4.59
Shares Outstanding551,231,260
10 Day Avg. Volume5,037,263
30 Day Avg. Volume4,844,092
Financial Highlights & Ratios
PEG Ratio1.16
Price to Book (P/B)N/A
Price to Sales (P/S)1.72
Price to Cash Flow (P/CF)7.40
P/FCF Ratio7.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$65.36Price Target Upside6.90% Upside
Rating ConsensusHold
Number of Analyst Covering15
General Mills Business Overview & Revenue Model
Company DescriptionGeneral Mills, Inc. (GIS) is a leading global food company headquartered in Minneapolis, Minnesota. The company operates in several sectors including retail, foodservice, and convenience stores, providing a diverse range of products that span cereals, snacks, yogurt, baking products, and pet foods. With iconic brands such as Cheerios, Betty Crocker, Pillsbury, Haagen-Dazs, and Blue Buffalo, General Mills is committed to delivering high-quality food products to consumers worldwide.
How the Company Makes MoneyGeneral Mills generates revenue primarily through the sale of branded food products across various categories including cereals, snacks, meals, baking products, and pet foods. The company's revenue streams are mainly divided into three segments: North America Retail, Convenience Stores & Foodservice, and International. North America Retail is the largest segment, contributing a significant portion of the company's total revenue through the sale of products to major retail chains and supermarkets. The Convenience Stores & Foodservice segment provides products to convenience stores, vending operators, and foodservice outlets. The International segment extends the company's reach globally, offering products across Europe, Latin America, and the Asia-Pacific region. General Mills also benefits from strategic partnerships and joint ventures, such as its stake in the Haagen-Dazs ice cream business outside of North America, which provide additional revenue streams. The company invests in marketing and innovation to strengthen its brand presence and adapt to changing consumer preferences, further driving sales and profitability.
General Mills Financial Statement Overview
Summary
General Mills demonstrates strong financial health with robust profitability, efficient cash flow management, and a stable balance sheet. The company effectively manages operations and leverages its assets, although revenue growth is relatively flat.Income Statement
General Mills shows strong profitability with a consistent gross profit margin around 35%. The net profit margin for TTM is approximately 13.1%, indicating healthy bottom-line performance. Revenue growth is stable, with a slight year-over-year decrease, but overall, the company's revenue generation is robust. The EBIT and EBITDA margins are strong, reflecting efficient operational management.82
Very Positive
Balance Sheet
General Mills maintains a moderate debt-to-equity ratio of about 1.58 TTM, indicating a balanced approach to leveraging. The return on equity for the latest period is approximately 28.3%, showcasing effective use of shareholder funds. The equity ratio suggests that 27.6% of the company's assets are financed by shareholders, reflecting a stable capital structure.75
Positive
Cash Flow
The company has a solid free cash flow, with a growth rate of approximately 10.7% TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is around 1.37, highlighting efficient conversion of income into cash. Free cash flow to net income ratio is approximately 1.08, suggesting good cash flow coverage of earnings.78
Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 19.90B | 19.86B | 20.09B | 18.99B | 18.13B | 17.63B | Gross Profit |
| 6.95B | 6.95B | 6.55B | 6.40B | 6.45B | 6.13B | EBIT |
| 3.65B | 3.43B | 2.66B | 3.48B | 3.14B | 2.95B | EBITDA |
| 4.08B | 4.08B | 4.08B | 4.16B | 3.88B | 3.66B | Net Income Common Stockholders |
| 2.60B | 2.50B | 2.59B | 2.71B | 2.34B | 2.18B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 418.00M | 418.00M | 585.50M | 569.40M | 1.51B | 1.68B | Total Assets |
| 31.47B | 31.47B | 31.45B | 31.09B | 31.84B | 30.81B | Total Debt |
| 13.32B | 13.32B | 11.71B | 11.62B | 12.61B | 13.54B | Net Debt |
| 12.90B | 12.90B | 11.12B | 11.05B | 11.11B | 11.86B | Total Liabilities |
| 21.82B | 21.82B | 20.75B | 20.30B | 21.46B | 21.91B | Stockholders Equity |
| 9.40B | 9.40B | 10.45B | 10.54B | 9.47B | 8.06B |
| Cash Flow | Free Cash Flow | ||||
| 2.80B | 2.53B | 2.09B | 2.75B | 2.45B | 3.22B | Operating Cash Flow |
| 3.58B | 3.30B | 2.78B | 3.32B | 2.98B | 3.68B | Investing Cash Flow |
| -1.19B | -1.20B | -346.40M | -1.69B | -512.80M | -486.20M | Financing Cash Flow |
| -676.60M | -2.27B | -2.40B | -2.50B | -2.72B | -1.94B |
General Mills Technical Analysis
Positive
61.14
Price Trends
60.47
Positive
63.41
Negative
65.44
Negative
Market Momentum
0.20
Negative
54.01
Neutral
72.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GIS, the sentiment is Positive. The current price of 61.14 is above the 20-day moving average (MA) of 59.63, above the 50-day MA of 60.47, and below the 200-day MA of 65.44, indicating a neutral trend. The MACD of 0.20 indicates Negative momentum. The RSI at 54.01 is Neutral, neither overbought nor oversold. The STOCH value of 72.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GIS.
General Mills Risk Analysis
General Mills disclosed 22 risk factors in its most recent earnings report. General Mills reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
General Mills Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $35.70B | 16.16 | 47.11% | 3.07% | 0.33% | 20.17% | |
78 Outperform | $84.45B | 19.07 | 17.12% | 2.72% | 1.18% | -5.47% | |
73 Outperform | $28.43B | 21.22 | 35.58% | 2.73% | -16.16% | 41.01% | |
72 Outperform | $33.70B | 13.30 | 28.29% | 3.85% | -1.48% | 11.45% | |
70 Outperform | $12.02B | 21.96 | 14.94% | 3.63% | 6.34% | -30.58% | |
68 Neutral | $37.43B | 13.87 | 5.58% | 5.11% | -2.98% | -2.22% | |
63 Neutral | $20.85B | 13.27 | -10.88% | 7.48% | 1.13% | 11.50% |
* Consumer Defensive Sector Average
Performance Comparison
GIS
General Mills
61.14
-1.03
-1.66%
CPB
Campbell Soup
40.33
-1.20
-2.89%
HSY
The Hershey Company
176.38
-5.58
-3.07%
K
Kellanova
82.36
30.54
58.93%
MDLZ
Mondelez International
65.29
-3.68
-5.34%
KHC
Kraft Heinz
30.98
-2.54
-7.58%
General Mills Earnings Call Summary
Earnings Call Date: Dec 18, 2024 | % Change Since: -6.34% | Next Earnings Date: Mar 19, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with notable achievements in the cereal and pet segments, but challenges in profit outlook and specific international markets like China. Increased investments are expected to impact short-term profitability, yet they are seen as necessary for long-term growth.Highlights
U.S. Cereal Business Growth
General Mills' U.S. cereal business returned to pound share growth with successful brand campaigns and innovation. The company saw significant improvements in share trends for food snacks, Mexican foods, soups, snack bars, and food service channels.
Pet Segment Recovery
Blue Buffalo Pet Food business returned to growth, with high single-digit growth in its Life Protection Formula. The company expects to see growth in the Wilderness line in the back half of the year.
Strong Performance in Food Service
The Food Service segment has been performing well, particularly in K-12 schools, showcasing General Mills' ability to effectively navigate regulatory environments and adapt to changing standards.
Lowlights
Profit Outlook Impacted
Increased investments in promotions and renovations have impacted profit outlook for the back half of the year. The company expects a reversal of 6-point operating profit benefits in the second half.
Challenges in China
Häagen-Dazs retail stores in China faced double-digit decline in sales. General Mills is reviewing its store footprint and focusing more on retail and food service channels.
Increased Input Cost Inflation
The company raised its input cost inflation outlook for the year to 4%, noting pressure points in packaging, dairy, and sugar, as well as labor-related conversion costs.
Company Guidance
During the General Mills Q2 2025 earnings call, the guidance emphasized the company's strategic focus on accelerating organic sales growth and improving volume growth by enhancing market share. This initiative was supported by increased investments in the business, including product renovation, brand building, and promotional support, which were above the original plan due to sustained value-seeking behavior among consumers. The company reported progress in various segments, such as a return to growth in the Blue Buffalo Pet Food business and U.S. cereal market share growth. Despite these improvements, challenges remain in specific areas like U.S. refrigerated dough, prompting adjustments to ensure better consumer value. The increased investment is expected to impact profit outlooks for the latter half of the year, but management remains confident that these steps will set the stage for stronger growth in fiscal 2026 and beyond. Key metrics include a revised input cost inflation guidance of 4%, an expected 5% HMM (Holistic Margin Management) productivity target, and an 8-point decline in operating profit for the back half of the fiscal year.General Mills Corporate Events
Executive/Board ChangesShareholder Meetings
General Mills Board of Directors Change in 2025
Neutral
Feb 4, 2025
On January 30, 2025, C. Kim Goodwin announced her decision not to seek reelection to the Board of Directors of General Mills at the company’s 2025 Annual Meeting of Shareholders in September. Ms. Goodwin will fulfill her responsibilities through the end of her current term, signaling a forthcoming change in board composition.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.